Economic Development and Cooperation Organization (OECD) Turkish economist Sebasten Turban, Türkiye’s current economic policies, the international investor can carry the trust of the more advanced point, stating that economic growth will return to the level of sustainable growth in 2026, he said.
Turban, one of the authors of OECD’s “Turkish Review Report” announced last week, announced the findings in the report and his predictions about the Turkish economy to the AA correspondent.
Turban, after the transformation in macroeconomic policies in Türkiye since the mid -2023, the current account deficit decreased, inflation and inflation expectations gradually decreased, he said.
Expressing that inflation is still high, Turban stated that it continues to tend to decline, “The practices in money and finance policies are compatible with our predictions. The strict stance in finance and monetary policies should be continued until the inflation is controlled. he said.
Turban pointed out that the Central Bank of the Republic of Turkey and the finance authorities are currently making strong commitments to maintain this stance and said, “When we look at the communication of the Central Bank, the monetary policy should be strict until the inflation is controlled and the interest rate decision will be determined in line with inflation and expectations.” he said.
Turban said that there may be a risk to early relaxation in monetary policy, but that this is outside the basic expectations, and that the main scenarios are that the strong commitment for macroeconomic policies will continue.
Turban stated that the transformation of the macroeconomic policy stance improves Türkiye’s external position and that gross reserves have increased significantly in the last two years.
Reminding that there has been an increase in net reserves except Swaps and that the net reserves returned to the positive time since the beginning of 2020 in 2024, “However, the decrease in (due to recent developments) can be observed so far, but this decline is not as high as the accumulation in the last 2 years. he said.
Türkiye’s potential growth is at 4 percent level
Turban stated that the economic growth in Türkiye was “sustainable” before these macroeconomic policies, and that strict money and fiscal policy helps to make this growth more sustainable.
This year, the Turkish economy expects to grow by 3.1 percent, as in every economy, strict money and fiscal policy creates pressure on inflation and growth, expressing that TURBAN, continued his speech as follows:
“We see that this slowdown is triggered by macroeconomic policies aiming to bring inflation back to a sustainable path. According to our current projections, Türkiye will return to this potential level.
“The maintenance of the strict economic policy stance is important for building investor confidence”
Evaluating the perception of international investors against Türkiye, Turban said that the perception of foreign investors has started to improve in the last period when macroeconomic policies were implemented and that one of the most important evidence of this is the increase in grades of credit rating agencies.
Turban stated that there is a higher optimism among international investors and said:
“But there is still a way to go. Foreign investments coming to Türkiye, not the fluctuating capital flows, but more permanent foreign investments in the economy is very important. Therefore, we argue that the policy stance should be maintained. Investor confidence can be increased over time. becomes more permanent. “
OECD’nin Türkiye review report
In the last week’s Turkish Investigation Report, OECD advised to maintain strict money and fiscal policy, and that structural reforms were needed to strengthen the financial discipline, increase expenditure efficiency, expand tax revenues and promote inclusive growth.
The report pointed out that Türkiye’s maintenance of economic convergence depends on the implementation of structural reforms, and it was estimated that the Turkish economy would grow by 3.1 percent this year and 3.9 percent in 2026, and that inflation would take place at the end of this year at 31.4 percent and 17.3 percent in 2026.
According to OECD data, the Turkish economy has become one of the fastest growing economies among OECD countries in the last 10 years and has grown by 4.9 percent annually.
